Measuring a Nation’s Income

3. Our Group member name:
Name ID
M21431111141
M21431111116
M21431111143
M21431111151
F21431111142

4. Our Presentation Topic
Name Is:
“Measuring a Nation’s Income”

5. Measuring a Nation’s income mainly focuses on gross
domestic product or GDP as a measure of economy wide
well-being.
 What is GDP?
GDP means gross domestic product ,GDP represents the
monetary value of all goods and services produced within
a nation's geographic borders over a specified period of
time.
 GDP is the total market value of all final goods and
services produced within a country in a given period of
time.

6. Describe The Circular-Flow
Diagram?

7. What is Nominal GDP?
The nominal GDP is the value of all the final goods and
services that an economy produced during a given year. It
is calculated by using the prices that are current in the year
in which the output is produced

8. What is real GDP?
The real GDP is the total value of all of the final goods and
services that an economy produces during a given year,
accounting for inflation . It is calculated using the prices
of a selected base year. To calculate Real GDP, you must
determine how much GDP has been changed by inflation
since the base year, and divide out the inflation each year.

9. what is GDP deflator?
The GDP deflator is a price index that measures inflation or
deflation in an economy by calculating a ratio of nominal
GDP to real GDP times 100.

10. What is the components of GDP?
GDP as examined using the Expenditure Approach is
reported as the sum of four components. The formula for
determining GDP is: C + I + G + NX= GDP
 C = Personal Consumption Expenditures.
 I = Gross Private Fixed Investment.
 G = Government Expenditures and Investment.
 NX = Net Exports .

11. How can we Measure GDP?
 GDP is the market value …
Output is Valued at market prices.
 Of All Final…
It records only the value of final goods, not intermediate goods.
 Goods and Services…
It includes Both Tangible goods and intangible Services.
 Produced….
It includes goods and services currently produced, not
transactions involving goods produced in the past.

12.  Within a Country….
It measure the value of production within the geographical
confines of a country.
 In a Given period of time….
It measure the value of production that takes place within
a specific interval of time, usually a year or a
quarter(Three months)

13. HAVE YOU
ANY
QUESTION
?